THOMAS FRIEDMAN ON UKRAINE

Date: 28/01/2015

Czar Putin’s Next Moves
JAN. 28, 2015
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Thomas L. Friedman

ZURICH — Last March, former Secretary of State Hillary Clinton was quoted as saying that Russian President Vladimir Putin’s attack on Ukraine, supposedly in defense of Russian-speakers there, was just like “what Hitler did back in the ‘30s“ — using ethnic Germans to justify his invasion of neighboring lands. At the time, I thought such a comparison was over the top. I don’t think so anymore. I’d endorse Mrs. Clinton’s comparison purely for the shock value: It draws attention to the awful things Putin is doing to Ukraine, not to mention his own country, whose credit rating was just reduced to junk status.

Putin’s use of Russian troops wearing uniforms without insignia to invade Ukraine and to covertly buttress Ukrainian rebels bought and paid for by Moscow — all disguised by a web of lies that would have made Nazi propagandist Joseph Goebbels blush and all for the purpose of destroying Ukraine’s reform movement before it can create a democratic model that might appeal to Russians more than Putin’s kleptocracy — is the ugliest geopolitical mugging happening in the world today.

Ukraine matters — more than the war in Iraq against the Islamic State, a.k.a., ISIS. It is still not clear that most of our allies in the war against ISIS share our values. That conflict has a big tribal and sectarian element. It is unmistakably clear, though, that Ukraine’s reformers in its newly elected government and Parliament — who are struggling to get free of Russia’s orbit and become part of the European Union’s market and democratic community — do share our values. If Putin the Thug gets away with crushing Ukraine’s new democratic experiment and unilaterally redrawing the borders of Europe, every pro-Western country around Russia will be in danger.

“Putin fears a Ukraine that demands to live and wants to live and insists on living on European values — with a robust civil society and freedom of speech and religion [and] with a system of values the Ukrainian people have chosen and laid down their lives for,” Natalie Jaresko, Ukraine’s finance minister, told a Ukraine seminar at the World Economic Forum in Davos, Switzerland, last week.

The U.S. and Germany have done a good job organizing the sanctions on Russia. While the Obama administration recently decided to deploy some American soldiers to Ukraine in the spring to train the Ukrainian National Guard, I’d support increasing our military aid to Ukraine’s Army now so it can better defend itself from the estimated 9,000 troops Putin has infiltrated into Ukraine.

Ukraine also needs $15 billion in loans and grants in the next year to stabilize its economy, in addition to its bailout from the International Monetary Fund. Ukrainians had dug themselves into a deep, deep hole with their 20-plus years of industrial levels of corruption from a series of bad governments after Kiev became independent of the Soviet Union. The reason for hope is that the revolution and latest elections in Ukraine have brought in a new generation of reformers, who are rapidly transforming ministries and passing tax and transparency regulations. They are actually welcoming hardheaded, good-governance benchmarks as a condition for Western aid. But if they deliver, we must deliver.

Treasury Secretary Jack Lew has been traveling across Europe this week in part to lock in the aid package for Kiev. The U.S. has committed its share, but the European Union is still balking a bit. Putin’s aim is to sow enough instability that the West will hold back aid so the Ukraine reformers will fail to deliver and be discredited. That would be a shame.
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Global financier George Soros, who’s been helping foster Ukrainian reform, told the Davos gathering that “there is a new Ukraine that is determined to be different from the old Ukraine. ... What makes it unique is that it is not only willing to fight but engage in executing a set of radical reforms. It is up against the old Ukraine that has not disappeared ... and up against a very determined design by President Putin to destabilize it and destroy it. But it is determined to assert the independence and European orientation of the new Ukraine.”

Ukraine could also impact the price of oil. The two biggest actors who can shape that price today are Saudi Arabia’s new king, Salman, and Russia’s czar, Putin. If the Saudis decide to cut back production significantly, the price of oil will go up. And if Putin decides to fully invade Ukraine, or worse, one of the Baltic states, and test whether NATO will really fight to defend either, the price of oil will go up. With his economy in shambles, Putin’s regime is now almost entirely dependent on oil and gas exports, so he’s really hurting with the oil price collapse. The odds of Putin fully invading Ukraine or the Baltics are low, but do not rule out either.

Triggering a big geopolitical crisis with NATO is an easy way for Putin to shock the oil price back up. Putin’s covert Ukraine interventions up to now have not succeeded in that. In sum: Today’s oil price will be most affected by two men — King Salman and how he uses his spare capacity to produce oil and Czar Putin and how he uses his spare capacity to produce trouble.

A version of this op-ed appears in print on January 28, 2015, on page A23 of the New York edition with the headline: Czar Putin’s Next Moves. Order Reprints| Today's Paper|Subscribe